Income Statement Forecasting - How to do a 5 year forecast in excel

In Corporate Finance forecasting (also called planning or budgeting) is an important responsibility, especially in FP&A functions. Forecasting is tied to planning the strategic direction of a company and helps to lay out what the future looks like.

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0:00 Intro to forecasting
2:23 Revenue
4:39 Price
6:53 SG&A
9:00 Depreciation
10:55 R&D
11:47 Other Operating Expense
12:37 Interest Expense
13:45 Taxes
14:34 Summary and Conclusion

[joviestera]

Hi, Thanks for the video you'd shared about Forecasting Income Statement & Budgeting. How could have an access in your Corporate Finance Academy for more useful finance & accounting reports. Thank you!

[hifi.]

Thank you for such informative and knowledgeable series of video

[AwesomeIcer]

I have an assignment for school where I have the actuals/historical of 2019 and 2020, and a forecast for 2021 and 2022 has already been made (it's a brokerage company), but I have to add an investment to the forecast of 2022. The problem is, the only information I have about the investment is that the wages and salaries are 150.000 dollars, it's an investment in real-estate, there is no information about the property itself. Is there anyway I can forecast the revenues I will get from this investment by only knowing the 150k dollars of wages and salaries? I also have the wages and salaries of 2019 and 2020, I divided the actual wages and salaries of 2019 and 2020 with the revenues of both years. By doing this I know that the wages and salaries of 2019 and 2020 are around 30% of the total revenues. Since the new investment has wages and salaries of 150k, if I calculate the following: 150.000/30% = 500.000 revenues. I know it is a very long and maybe a bit confusing question, but is the way I calculated the revenue possible or is there no relation between the amount of wages and salaries and the revenue?

[joviestera]

Hi, Thanks for sharing this video about Forecasting Income Statement & Budgeting, its awesome and absolutely helpful. Have question, how could I have an access with your Corporate Finance Academy for more useful finance & accounting reports. I want to learn more about your finance & accounting business models and reporting template. Thank you!

[soundaryasuresh]

Sir how to take macro economic factors percentages and club in this excel file to get forecast revenue percentage. What i mean is each economic factor gives one value and how to generalise a single revenue percentage from all these factors @corporate finance academy

[uqbashah]

I could not find the template on the website, could you please guide me, where can I download the template?

[tabindakazmi]

Hi, I checked your website, I cant find the excel formula sheet for this one/ Can you please guide?

[saeednavayi]

Thank you for this contentful video.
I have a question. I did not get "Reduction challenge" term in calculating "Other Operating Expenses".
I would appreciate it, if you would explain it.

[Call_me_proto]

When you were showing those 5 year % assumptions for each line item, were those numbers based off of the revenue of the first 5 years and then you took the average of it?

[onomeegbedi]

Do you still have the template? I am having trouble accessing the website

[subashinianumanthan]

can you share on how to forecast balance sheet and cash flow statement as well?

[ReedCredd]

In revenue we don't have assumption what do we do to solve it?

[taif]

how do I find the future % revenue growth ? why you used 3 and 5

[aidanheffernan]

Could you also use a linear regression to forecast revenue?

[meytithveasna]

how to make 5 year budget for micro finance in excel ?

[neesa]

Hi this was very useful. Could you kindly share the excel please. It would be very helpful.

Thank you

[maryjoyrpanerio]

hi can i ask for the excel file? I cant seem to find it in your website. Thank you in advance

[sheenxh]

hi! can you kindly share excel for this? it would be very helpful

[احمداحمد-سقش]

Please i need templet very urgent because i can't access to your web site 🙏

[lokiramu]

hi please send a pdf of forecasted profit and loss and balance sheet please